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INTERNATIONAL TENDER
SUPPLY OF LPG CYLINDERS COMPLETE WITH
VALVES
TENDER NO. NOCK/PRC/03(1165)
NATIONAL OIL CORPORATION OF KENYA
AON MINET HOUSE, 7TH FLOOR
MAMLAKA ROAD, OFF NYERERE ROAD
P.O BOX 58567 – 00200
NAIROBI
Email: [email protected]
August 2016
Tender Closing Date: 22nd September 2016 Time: 1500hrs (East African Time)
NATIONAL OIL CORPORATION OF KENYA
Page 2 of 57
TABLE OF CONTENTS .............................................................................. Page
1 SECTION I – INVITATION TO TENDER ..............................................................3
2 SECTION II – INSTRUCTIONS TO TENDERERS ...............................................5
3 SECTION III – GENERAL CONDITIONS OF CONTRACT .............................22
4 SECTION IV – SPECIAL CONDITIONS OF CONTRACT ................................28
5 SECTION V – TECHNICAL SPECIFICATIONS .................................................29
6 SECTION VI – SCHEDULE OF REQUIREMENTS ............................................43
7 SECTION VII – PRICE SCHEDULE FOR GOODS .............................................44
8 SECTION VIII – STANDARD FORMS ..................................................................45
Page 3 of 57
1 SECTION I – INVITATION TO TENDER
DATE: August, 2016
TENDER REF NO. NOCK/PRC/03(1165)
TENDER NAME: TENDER FOR SUPPLY OF LPG CYLINDERS COMPLETE WITH
VALVES
1.1 The National Oil Corporation of Kenya (National Oil) invites sealed bids from interested and
eligible candidates for supply of Zinc metalized LPG Cylinders Complete with Valves for a
framework contract for (two) 2 years.
1.2 Interested and eligible candidates may view/obtain/download the tender documents at
www.nationaloil.co.ke or at:
Procurement Department
National Oil Corporation of Kenya
AON Minet House, Mamlaka Road off Nyerere Road
P.O Box Number 58567 – 00200,
NAIROBI
Tel: +254-20-6952000, Fax: +254-20-6952400
Email: [email protected]
during normal working hours on Monday to Friday between 0800hrs to 1700hrs (East Africa
Time).
1.3 The tender document downloaded from the website is free of charge The candidates who
download the tender documents must register their details with the National Oil
Procurement Department via email to the email addresses given above in order to receive
any clarifications and/or addenda. Printed tender documents collected in hard copy attracts a
non- refundable fee of Kenya Shillings one thousand only (Kshs 1,000) or United States Dollars
Eleven Only US$ 11 which is payable before the tender closing date and time, in form of cash
deposits at the National Oil Bank Accounts as given below.
(a) Account Name: NATIONAL OIL CORPORATION OF KENYA
Account Number: 1107169380
Bank: KENYA COMMERCIAL BANK LTD
Branch: MOI AVENUE
(b) Account Name: NATIONAL OIL CORPORATION OF KENYA
Account Number: 0560292466991
Bank: EQUITY BANK LIMITED
Branch: KENPIPE INDUSTRIAL AREA
Swift Code: EQBLKENA
NAIROBI, KENYA
An official National Oil’s receipt of payment of the Kshs 1,000 will be issued at the National
Oil’s Cashier’s Office (upon verification of the deposit slip with the bank) on 7th Floor AON
Minet House, Mamlaka Road off Nyerere Road, Nairobi.
Page 4 of 57
1.4 Prices quoted should be net CIF Mombasa, expressed in United States Dollars (US$) and shall
remain valid for a period of one hundred and twenty (120) days from the closing date of the
tender.
1.5 The tenderers must provide the following mandatory requirements (for preliminary evaluation)
with their tender response. Non provision of the below, will lead to the tenderer being
disqualified from the tender proceedings:
Copy of Incorporation/Registration details certified by a Notary Public or advocate
Tender security (Bid bond) of either Kenya Shillings One Million Five Hundred Thousand
Only (KShs 1,500,000) or United States Dollars Fifteen Thousand (US$ 15,000); in form
of a Bank guarantee from a bank licensed and operating in Kenya or another bank
recognized by the Central Bank of Kenya or from an Insurance Company duly recognized
by the Public Procurement Oversight Authority of Kenya (PPOA).
Letter of Manufacturer’s Authorization (if the tenderer is the manufacturer, it should clearly
indicate in a letter from itself) addressed directly to National Oil.
Duly filled and signed confidential business questionnaire (Section VIII of tender
document)
Duly filled and signed bidder’s declaration and integrity pact (Section VIII of the tender
document)
Samples of zinc metalized plate of the color of cylinder with National Oil brand Logo the
tenderer proposes to supply
Samples of the fittings(valve, rubber seals, caps)
Drawings of complete cylinder design(s) for 3kg,6kg,13kg and 50kg
1.6 Tenders must be enclosed in plain sealed envelopes clearly labeled “INTERNATIONAL
TENDER FOR SUPPLY OF ZINC METALIZED LPG CYLINDERS COMPLETE
WITH VALVES – Ref No. NOCK/PRC/03(1165)” with the instructions “Do not Open
Before 22nd September 2016 at 1500hrs (East Africa Time)”so as to be received on or
before 22nd September 2016 at 1500hrs (East Africa Time)”. Late tenders will automatically
be disqualified, no matter the circumstances.
1.7 Tenders will be opened immediately thereafter in the presence of the Candidates or their
representatives who choose to attend at
National Oil Lounge
5th Floor AON Minet House
Mamlaka Road, off Nyerere Road,
NAIROBI
For AG. CHIEF EXECUTIVE OFFICER
Page 5 of 57
2 SECTION II – INSTRUCTIONS TO TENDERERS
TABLE OF CONTENTS .................................................................................................. Page
2.1 ELIGIBLE TENDERERS ...........................................................................................7
2.2 ELIGIBLE GOODS .....................................................................................................7
2.3 COST OF TENDERING .............................................................................................7
2.4 THE TENDER DOCUMENT .....................................................................................7
2.5 CLARIFICATION OF DOCUMENTS ......................................................................8
2.6 AMENDMENT OF DOCUMENTS ...........................................................................8
2.7 LANGUAGE OF TENDER .........................................................................................8
2.8 DOCUMENTS COMPRISING OF TENDER ..........................................................9
2.9 TENDER FORMS ........................................................................................................9
2.10 TENDER PRICES ........................................................................................................9
2.11 TENDER CURRENCIES ............................................................................................9
2.12 TENDERERS ELIGIBILITY AND QUALIFICATIONS .......................................9
2.13 GOODS ELIGIBILITY AND CONFORMITY TO TENDER DOCUMENTS ...10
2.14 TENDER SECURITY ................................................................................................11
2.15 VALIDITY OF TENDERS........................................................................................11
2.16 FORMAT AND SIGNING OF TENDER ................................................................12
2.17 SEALING AND MARKING OF TENDERS ...........................................................12
2.18 DEADLINE FOR SUBMISSION OF TENDERS ...................................................12
2.19 MODIFICATION AND WITHDRAWAL OF TENDERS ....................................13
2.20 OPENING OF TENDERS .........................................................................................13
Page 6 of 57
2.21 CLARIFICATION OF TENDERS ...........................................................................13
2.22 PRELIMINARY EXAMINATION ..........................................................................14
2.23 CONVERSION TO SINGLE CURRENCY ............................................................14
2.24 EVALUATION AND COMPARISON OF TENDERS ..........................................14
2.25 PREFERENCE ...........................................................................................................15
2.26 CONTACTING THE PROCURING ENTITY .......................................................15
2.27 AWARD OF CONTRACT ........................................................................................15
2.28 NOTIFICATION OF AWARD .................................................................................16
2.29 SIGNING OF CONTRACT ......................................................................................16
2.30 PERFORMANCE SECURITY .................................................................................16
2.31 CORRUPT OR FRAUDULENT PRACTICES ......................................................16
2.32 APPENDIX TO INSTRUCTIONS TO TENDERERS ...........................................18
2.33 LANGUAGE OF TENDER .......................................................................................21
Page 7 of 57
2.1 Eligible Tenderers
2.1.1 This Invitation for Tenders is open to all tenderers eligible as described in the Invitation to
Tender. Successful tenderers shall complete the supply of goods by the intended completion
date specified in the Schedule of Requirements Section VI.
2.1.2 The procuring entity’s employees, committee members, board members and their relative
(spouse and children) are not eligible to participate in the tender.
2.1.3 Tenderers shall provide the qualification information statement that the tenderer (including all
members of a joint venture and subcontractors) is not associated, or have been associated in
the past, directly or indirectly, with a firm or any of its affiliates which have been engaged by
the Procuring entity to provide consulting services for the preparation of the design,
specifications, and other documents to be used for the procurement of the goods under this
Invitation for tenders.
2.1.4 Tenderers shall not be under a declaration of ineligibility for corrupt and fraudulent practices.
2.2 Eligible Goods
2.2.1 All goods to be supplied under the contract shall have their origin in eligible source countries.
2.2.2 For purposes of this clause, “origin” means the place where the goods are mined, grown, or
produced. Goods are produced when, through manufacturing, processing, or substantial and
major assembly of components, a commercially-recognized product results that is substantially
different in basic characteristics or in purpose or utility from its components
2.2.3 The origin of goods is distinct from the nationality of the tenderer.
2.3 Cost of Tendering
2.3.1 The Tenderer shall bear all costs associated with the preparation and submission of its tender,
and the procuring entity, will in no case be responsible or liable for those costs, regardless of
the conduct or outcome of the tendering process.
2.3.2 The price to be charged for the tender document shall not exceed Kshs.1,000/=
2.3.3 All firms found capable of performing the contract satisfactorily in accordance with the set
prequalification criteria shall be prequalified.
2.4 The Tender Document
2.4.1 The tender document comprises the documents listed below and addenda issued in accordance
with clause 2.6 of these instructions to Tenderers:
i) Invitation to Tender
ii) Instructions to tenderers
iii) General Conditions of Contract
iv) Special Conditions of Contract
v) Schedule of requirements
Page 8 of 57
vi) Technical Specifications
vii) Tender Form and Price Schedules
viii) Tender Security Form
ix) Contract Form
x) Performance Security Form
xi) Bank Guarantee for Advance Payment Form
xii) Manufacturer’s Authorization Form
xiii) Confidential Business Questionnaire
xiv) Bidder`s Declaration and Integrity Pact
2.4.1 The Tenderer is expected to examine all instructions, forms, terms, and specifications in the
tender documents. Failure to furnish all information required by the tender documents or to
submit a tender not substantially responsive to the tender documents in every respect will be at
the tenderers risk and may result in the rejection of its tender.
2.5 Clarification of Documents
2.5.1 A prospective tenderer requiring any clarification of the tender document may notify the
Procuring entity in writing or by post at the entity’s address indicated in the Invitation to
Tender. The Procuring entity will respond in writing to any request for clarification of the
tender documents, which it receives not later than seven (7) days prior to the deadline for the
submission of tenders, prescribed by the procuring entity. Written copies of the Procuring
entities response (including an explanation of the query but without identifying the source of
inquiry) will be sent to all prospective tenderers that have received the tender document.
2.5.2 The procuring entity shall reply to any clarifications sought by the tenderer within 3 days of
receiving the request to enable the tenderer to make timely submission of its tender.
2.6 Amendment of Documents
2.6.3 At any time prior to the deadline for submission of tenders, the Procuring entity, for any reason,
whether at its own initiative or in response to a clarification requested by a prospective tenderer,
may modify the tender documents by amendment.
2.6.4 All prospective candidates that have received the tender documents will be notified of the
amendment in writing or by post and will be binding on them.
2.6.5 In order to allow prospective tenderers reasonable time in which to take the amendment into
account in preparing their tenders, the Procuring entity, at its discretion, may extend the
deadline for the submission of tenders.
2.7 Language of Tender
2.7.1 The tender prepared by the tenderer, as well as all correspondence and documents relating to
the tender exchange by the tenderer and the Procuring entity, shall be written in English
language, provided that any printed literature furnished by the tenderer may be written in
another language provided they are accompanied by an accurate English translation of the
relevant passages in which case, for purposes of interpretation of the tender, the English
translation shall govern.
Page 9 of 57
2.8 Documents Comprising of Tender
2.8.1 The tender prepared by the tenderers shall comprise the following components:
a) a Tender Form and a Price Schedule completed in accordance with paragraph 2.9, 2.10
and 2.11 below;
b) documentary evidence established in accordance with paragraph 2.1 that the tenderer is
eligible to tender and is qualified to perform the contract if its tender is accepted;
c) documentary evidence established in accordance with paragraph 2.2 that the goods and
ancillary services to be supplied by the tenderer are eligible goods and services and
conform to the tender documents; and
d) tender security furnished in accordance with paragraph 2.14.
2.9 Tender Forms
2.9.1 The tenderer shall complete the Tender Form and the appropriate Price Schedule furnished in
the tender documents, indicating the goods to be supplied, a brief description of the goods, their
country of origin, quantity, and prices.
2.10 Tender Prices
2.10.1 The tenderer shall indicate on the appropriate Price Schedule the unit prices and total tender
price of the goods it proposes to supply under the contract
2.10.2 Prices indicated on the Price Schedule shall include all costs including taxes, insurances and
delivery CIF Mombasa port.
2.10.3 Prices quoted by the tenderer shall be fixed during the Tender’s performance of the contract
and not subject to variation on any account. A tender submitted with an adjustable price
quotation will be treated as non-responsive and will be rejected, pursuant to paragraph 2.22
2.10.4 The validity period of the tender shall be 120 days from the date of opening of the tender.
2.11 Tender Currencies
2.11.1 Prices shall be quoted in Kenya Shillings unless otherwise specified in the Appendix to
Instructions to Tenderers.
2.12 Tenderers Eligibility and Qualifications
2.12.1 Pursuant to paragraph 2.1. the tenderer shall furnish, as part of its tender, documents
establishing the tenderers eligibility to tender and its qualifications to perform the contract if
its tender is accepted.
2.12.2 The documentary evidence of the tenderers eligibility to tender shall establish to the Procuring
entity’s satisfaction that the tenderer, at the time of submission of its tender, is from an eligible
source country as defined under paragraph 2.1.
Page 10 of 57
2.12.3 The documentary evidence of the tenderers qualifications to perform the contract if its tender
is accepted shall be established to the Procuring entity’s satisfaction;
a) that, in the case of a tenderer offering to supply goods under the contract which the
tenderer did not manufacture or otherwise produce, the tenderer has been duly
authorized by the goods’ Manufacturer or producer to supply the goods.
b) that the tenderer has the financial, technical, and production capability necessary to
perform the contract;
c) that, in the case of a tenderer not doing business within Kenya, the tenderer is or will
be (if awarded the contract) represented by an Agent in Kenya, and or should be able
to provide qualified personnel within 2 weeks at tenders own cost to carry out technical
support for the goods tendered for.
2.13 Goods Eligibility and Conformity to Tender Documents
2.13.1 Pursuant to paragraph 2.2 of this section, the tenderer shall furnish, as part of its tender
documents establishing the eligibility and conformity to the tender documents of all goods
which the tenderer proposes to supply under the contract
2.13.2 The documentary evidence of the eligibility of the goods shall consist of a statement in the
Price Schedule of the country of origin of the goods and services offered which shall be
confirmed by a certificate of origin issued at the time of shipment.
2.13.3 The documentary evidence of conformity of the goods to the tender documents may be in the
form of literature, drawings, and data, and shall consist of:
a) a detailed description of the essential technical and performance characteristic of the
goods;
b) a list giving full particulars, including available source and current prices of spare parts,
special tools, etc., necessary for the proper and continuing functioning of the goods for
a period of two (2) years, following commencement of the use of the goods by the
Procuring entity; and
c) a clause-by-clause commentary on the Procuring entity’s Technical Specifications
demonstrating substantial responsiveness of the goods and service to those
specifications, or a statement of deviations and exceptions to the provisions of the
Technical Specifications.
2.13.4 For purposes of the documentary evidence to be furnished pursuant to paragraph 2.13.3(c)
above, the tenderer shall note that standards for workmanship, material, and equipment, as well
as references to brand names or catalogue numbers designated by the Procurement entity in its
Technical Specifications, are intended to be descriptive only and not restrictive. The tenderer
may substitute alternative standards, brand names, and/or catalogue numbers in its tender,
provided that it demonstrates to the Procurement entity’s satisfaction that the substitutions
ensure substantial equivalence to those designated in the Technical Specifications.
Page 11 of 57
2.14 Tender Security
2.14.1 The tenderer shall furnish, as part of its tender, a tender security for the amount specified in the
Appendix to Invitation to Tenderers.
2.14.2 The tender security shall be in the amount of either Kenya Shillings One Million Five Hundred
Thousand Only (Kshs 1,500,000) or United States Dollars Fifteen Thousand (US$ 15,000); in
form of a Bank guarantee from a bank licensed and operating in Kenya or another bank
recognized by the Central Bank of Kenya or from an Insurance Company duly recognized by
the Public Procurement Oversight Authority of Kenya (PPOA).
2.14.3 The tender security is required to protect the Procuring entity against the risk of Tenderer’s
conduct which would warrant the security’s forfeiture, pursuant to paragraph 2.14.7.
2.14.4 The tender security shall be denominated in Kenya Shillings or in another freely convertible
currency, and shall be in the form of a bank guarantee or a bank draft issued by a reputable
bank located in Kenya or abroad, or a guarantee issued by a reputable insurance company in
the form provided in the tender documents or another form acceptable to the Procuring entity
and valid for thirty (30) days beyond the validity of the tender.
2.14.5 Any tender not secured in accordance with paragraph 2.14.1 and 2.14.3 will be rejected by the
Procuring entity as non responsive, pursuant to paragraph 2.22.
2.14.6 Unsuccessful Tenderers’ tender security will be discharged or returned as promptly as possible
but not later than thirty (30) days after the expiration of the period of tender validity prescribed
by the Procuring entity.
2.14.7 The successful Tenderer’s tender security will be discharged upon the tenderer signing the
contract, pursuant to paragraph 2.27 and furnishing the performance security, pursuant to
paragraph 2.28.
2.14.8 The tender security may be forfeited:
a) if a tenderer withdraws its tender during the period of tender validity specified by the
procuring entity on the Tender Form; or
b) in the case of a successful tenderer, if the tenderer fails:
i) to sign the contract in accordance with paragraph 2.29; or
ii) to furnish performance security in accordance with paragraph 2.30.
2.15 Validity of Tenders
2.15.1 Tenders shall remain valid for 120 days or as specified in the Invitation to Tender after the date
of tender opening prescribed by the Procuring entity, pursuant to paragraph 2.18. A tender
valid for a shorter period shall be rejected by the Procuring entity as non responsive.
2.15.2 In exceptional circumstances, the Procuring entity may solicit the Tenderer’s consent to an
extension of the period of validity. The request and the responses thereto shall be made in
writing. The tender security provided under paragraph 2.14 shall also be suitably extended. A
Page 12 of 57
tenderer may refuse the request without forfeiting its tender security. A tenderer granting the
request will not be required nor permitted to modify its tender.
2.16 Format and Signing of Tender
2.16.1 The tenderer shall prepare two copies of the tender, clearly marking each “ORIGINAL
TENDER” and “COPY OF TENDER,” as appropriate. In the event of any discrepancy between
them, the original shall govern.
2.16.2 The original and all copies of the tender shall be typed or written in indelible ink and shall be
signed by the tenderer or a person or persons duly authorized to bind the tenderer to the
contract. All pages of the tender, except for unamended printed literature, shall be initialed by
the person or persons signing the tender.
2.16.3 The tender shall have no interlineations, erasures, or overwriting except as necessary to correct
errors made by the tenderer, in which case such corrections shall be initialed by the person or
persons signing the tender.
2.17 Sealing and Marking of Tenders
2.17.1 The Tenderer shall seal the original and each copy of the tender in separate envelopes, duly
marking the envelopes as “ORIGINAL” and “COPY.” The envelopes shall then be sealed in
an outer envelope.
2.17.2 The inner and outer envelopes shall:
a) be addressed to the Procuring entity at the address given in the Invitation to Tender:
b) bear, tender number and name in the Invitation for Tenders and the words, “DO NOT
OPEN BEFORE 22ND SEPTEMBER 2016 1500hrs (EAST AFRICA TIME).”
2.17.3 The inner envelopes shall also indicate the name and address of the tenderer to enable the tender
to be returned unopened in case it is declared “late”.
2.17.4 If the outer envelope is not sealed and marked as required by paragraph 2.17.2, the Procuring
entity will assume no responsibility for the tender’s misplacement or premature opening.
2.18 Deadline for Submission of Tenders
2.18.1 Tenders must be received by the Procuring entity at the address specified under paragraph
2.17.2 no later than 22nd September 2016 at 1500hrs (East Africa Time).
2.18.2 The Procuring entity may, at its discretion, extend this deadline for the submission of tenders
by amending the tender documents in accordance with paragraph 2.6, in which case all rights
and obligations of the Procuring entity and candidates previously subject to the deadline will
therefore be subject to the deadline as extended.
Page 13 of 57
2.19 Modification and Withdrawal of Tenders
2.19.1 The tenderer may modify or withdraw its tender after the tender’s submission, provided that
written notice of the modification, including substitution or withdrawal of the tenders, is
received by the Procuring Entity prior to the deadline prescribed for submission of tenders.
2.19.2 The Tenderer’s modification or withdrawal notice shall be prepared, sealed, marked, and
dispatched in accordance with the provisions of paragraph 2.17. A withdrawal notice may also
be sent by cable, telex but followed by a signed confirmation copy, postmarked not later than
the deadline for submission of tenders.
2.19.3 No tender may be modified after the deadline for submission of tenders.
2.19.4 No tender may be withdrawn in the interval between the deadline for submission of tenders
and the expiration of the period of tender validity specified by the tenderer on the Tender Form.
Withdrawal of a tender during this interval may result in the Tenderer’s forfeiture of its tender
security, pursuant to paragraph 2.14.8.
2.19.5 The procuring entity may at any time terminate procurement proceedings before contract award
and shall not be liable to any person for the termination.
2.19.6 The procuring entity shall give prompt notice of the termination to the tenderers and on request
give its reasons for termination within 14 days of receiving the request from any tenderer.
2.20 Opening of Tenders
2.20.1 The Procuring entity will open all tenders in the presence of tenderers’ representatives who
choose to attend on 22nd September 2016 at1500hrs (East Africa Time) and in the location
specified in the Invitation to Tender.
The tenderers’ representatives who are present shall sign a register evidencing their attendance.
2.20.2 The tenderers’ names, tender modifications or withdrawals, tender prices, discounts and the
presence or absence of requisite tender security and such other details as the Procuring entity,
at its discretion, may consider appropriate, will be announced at the opening.
2.20.3 The Procuring entity will prepare minutes of the tender opening.
2.21 Clarification of Tenders
2.21.1 To assist in the examination, evaluation and comparison of tenders the Procuring entity may,
at its discretion, ask the tenderer for a clarification of its tender. The request for clarification
and the response shall be in writing, and no change in the prices or substance of the tender shall
be sought, offered, or permitted.
Page 14 of 57
2.21.2 Any effort by the tenderer to influence the Procuring entity in the Procuring entity’s tender
evaluation, tender comparison or contract award decisions may result in the rejection of the
tenderers’ tender.
2.22 Preliminary Examination
2.22.1 The Procuring entity will examine the tenders to determine whether they are complete, whether
any computational errors have been made, whether required sureties have been furnished,
whether the documents have been properly signed, and whether the tenders are generally in
order.
2.22.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy between
the unit price and the total price that is obtained by multiplying the unit price and quantify, the
unit price shall prevail, and the total price shall be corrected. If the candidate does not accept
the correction of the errors, its tender will be rejected, and its tender security forfeited. If there
is a discrepancy between words and figures the amount in words will prevail
2.22.3 The Procuring entity may waive any minor informality or non-conformity or irregularity in a
tender which does not constitute a material deviation, provided such waiver does not prejudice
or effect the relative ranking of any tenderer.
2.22.4 Prior to the detailed evaluation, pursuant to paragraph 2.23 the Procuring entity will determine
the substantial responsiveness of each tender to the tender documents. For purposes of these
paragraphs, a substantially responsive tender is one, which conforms to all the terms and
conditions of the tender documents without material deviations. The Procuring entity’s
determination of a tender’s responsiveness is to be based on the contents of the tender itself
without recourse to extrinsic evidence.
2.22.5 If a tender is not substantially responsive, it will be rejected by the Procuring entity and may
not subsequently be made responsive by the tenderer by correction of the non conformity.
2.23 Conversion to Single Currency
2.23.1 Where other currencies are used, the procuring entity will convert these currencies to Kenya
Shillings using the selling exchange rate on the date of tender closing provided by the Central
Bank of Kenya.
2.24 Evaluation and Comparison of Tenders
2.24.1 The Procuring entity will evaluate and compare the tenders which have been determined to be
substantially responsive, pursuant to paragraph 2.22.
2.24.2 The tender evaluation committee shall evaluate the tender within 30 days of the validity period
from the date of opening the tender.
2.24.3 A tenderer who gives false information in the tender document about its qualification or who
refuses to enter into a contract after notification of contract award shall be considered for
debarment from participating in future public procurement.
Page 15 of 57
2.25 Preference
2.25.1 Preference where allowed in the evaluation of tenders shall not exceed 15%.
2.26 Contacting the Procuring entity
2.26.1 Subject to paragraph 2.21 no tenderer shall contact the Procuring entity on any matter related
to its tender, from the time of the tender opening to the time the contract is awarded.
2.26.2 Any effort by a tenderer to influence the Procuring entity in its decisions on tender, evaluation,
tender comparison, or contract award may result in the rejection of the Tenderer’s tender.
2.27 Award of Contract
a) Post-qualification
2.27.1 In the absence of pre-qualification, the Procuring entity will determine to its satisfaction
whether the tenderer that is selected as having submitted the lowest evaluated responsive tender
is qualified to perform the contract satisfactorily.
2.27.2 The determination will take into account the tenderer financial, technical, and production
capabilities. It will be based upon an examination of the documentary evidence of the tenderers
qualifications submitted by the tenderer, pursuant to paragraph 2.12.3 as well as such other
information as the Procuring entity deems necessary and appropriate.
2.27.3 An affirmative determination will be a prerequisite for award of the contract to the tenderer. A
negative determination will result in rejection of the Tenderer’s tender, in which event the
Procuring entity will proceed to the next lowest evaluated tender to make a similar
determination of that Tenderer’s capabilities to perform satisfactorily.
b) Award Criteria
2.27.4 The Procuring entity will award the contract to the successful tenderer(s) whose tender has
been determined to be substantially responsive and has been determined to be the lowest
evaluated tender, provided further that the tenderer is determined to be qualified to perform the
contract satisfactorily.
c) Procuring entity’s Right to Vary quantities
2.27.5 The Procuring entity reserves the right at the time of contract award to increase or decrease the
quantity of goods originally specified in the Schedule of requirements without any change in
unit price or other terms and conditions.
d) Procuring entity’s Right to Accept or Reject Any or All Tenders
2.27.6 The Procuring entity reserves the right to accept or reject any tender, and to annul the tendering
process and reject all tenders at any time prior to contract award, without thereby incurring any
liability to the affected tenderer or tenderers or any obligation to inform the affected tenderer
or tenderers of the grounds for the Procuring entity’s action.
Page 16 of 57
2.28 Notification of Award
2.28.1 Prior to the expiration of the period of tender validity, the Procuring entity will notify the
successful tenderer in writing that its tender has been accepted.
2.28.2 The notification of award will constitute the formation of the Contract but will have to wait
until the contract is finally signed by both parties.
2.28.3 Upon the successful Tenderer’s furnishing of the performance security pursuant to paragraph
2.30, the Procuring entity will promptly notify each unsuccessful Tenderer and will discharge
its tender security, pursuant to paragraph 2.14.
2.29 Signing of Contract
2.29.1 At the same time as the Procuring entity notifies the successful tenderer that its tender has been
accepted, the Procuring entity will send the tenderer the Contract Form provided in the tender
documents, incorporating all agreements between the parties.
2.29.2 The parties to the contract shall have it signed within 30 days from the date of notification of
contract award unless there is an administrative review request.
2.29.3 Within thirty (30) days of receipt of the Contract Form, the successful tenderer shall sign and
date the contract and return it to the Procuring entity.
2.30 Performance Security
2.30.1 Within Thirty (30) days of the receipt of notification of award from the Procuring entity, the
successful tenderer shall furnish the procuring entity with the performance security in
accordance with the Conditions of Contract, in the Performance Security Form provided in the
tender documents, or in another form acceptable to the Procuring entity.
2.30.2 Failure of the successful tenderer to comply with the requirements of paragraph 2.27 or
paragraph 2.28 shall constitute sufficient grounds for the annulment of the award and forfeiture
of the tender security, in which event the Procuring entity may make the award to the next
lowest evaluated Candidate or call for new tenders.
2.31 Corrupt or Fraudulent Practices
2.31.1 The Procuring entity requires that tenderers observe the highest standard of ethics during the
procurement process and execution of contracts when used in the present regulations, the
following terms are defined as follows;
i) “corrupt practice” means the offering, giving, receiving, or soliciting of anything of
value to influence the action of a public official in the procurement process or in
contract execution; and
ii) “fraudulent practice” means a misrepresentation of facts in order to influence a
procurement process or the execution of a contract to the detriment of the Procuring
entity, and includes collusive practice among tenderer (prior to or after tender
Page 17 of 57
submission) designed to establish tender prices at artificial non-competitive levels and
to deprive the Procuring entity of the benefits of free and open competition;
2.31.2 The procuring entity will reject a proposal for award if it determines that the tenderer
recommended for award has engaged in corrupt or fraudulent practices in competing for the
contract in question.
2.31.3 Further a tenderer who is found to have indulged in corrupt or fraudulent practices risks being
debarred from participating in public procurement in Kenya.
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2.32 Appendix to Instructions to Tenderers
The following information regarding the particulars of the tender shall complement,
supplement or amend the provisions of the instructions to tenderers. Wherever there is a
conflict between the provision of the instructions to tenderers and the provisions of the
appendix, the provisions of the appendix herein shall prevail over those of the instructions to
tenderers
INSTRUCTIONS
TO TENDERERS
REFERENCE
PARTICULARS OF APPENDIX TO INSTRUCTIONS TO
TENDERS
2.1.1
Eligible tenderers are as indicated here below
i) Must provide the following mandatory requirements (for
preliminary evaluation).Non provision of the below, will lead
to the tenderer being disqualified from the tender proceedings
Copy of Incorporation/Registration details certified by a Notary
Public or advocate
Tender security (Bid bond) of either Kenya Shillings One Million
Five Hundred Thousand Only (Kshs 1,500,000) or United States
Dollars Fifteen Thousand only (US$ 15,000); in form of a Bank
guarantee from a bank licensed and operating in Kenya or another
bank recognized by the Central Bank of Kenya. Tender security
from an Insurance Company duly recognized by the Public
Procurement Oversight Authority of Kenya (PPOA) is also
acceptable.
Letter of Manufacturer’s Authorization (if the tenderer is the
manufacturer, it should clearly indicate in a letter from itself)
addressed directly to National Oil.
Duly filled and signed confidential business questionnaire (Section
VIII of tender document)
Duly filled and signed bidder’s declaration and integrity pact
(Section VIII of the tender document)
Samples of zinc metalized plate of the color of cylinder with
National Oil brand Logo
Samples of the fittings(valve, rubber seals, caps)
Drawings of complete cylinder design(s) for 3kg,6kg,13kg and
50kg
Other Requirements
Paginated/serialized tender document(proposals)
Letter from reputable bank confirming the period the bidder has
operated an account with them and demonstrating their credit
worthiness Physical location of company’s official premises
(attach copy of lease agreement or otherwise for office location)
All samples presented must be accompanied by a permit or written
assurance from Kenya Bureau of Standards (KEBS) to input the
Diamond mark of quality on the cylinders manufactured by the
tenderer.
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The proposed cylinders must conform to the Kenya Bureau of
Standards (KEBS) and/or ISO standards where Kenya standard
does not exist
It is the responsibility of the tenderer to research on the firms
affiliated by the Kenya Bureau of Standards (KEBS) and whose
certificates will be recognized.
2.11 Tender currency shall be either in US Dollars.
2.14.1
Tender security (Bid bond) of either Kenya Shillings One Million Five
Hundred Thousand Only (Kshs 1,500,000) or United States Dollars
Fifteen Thousand (US$ 15,000); in form of a Bank guarantee from a
bank licenced and operating in Kenya or another bank recognized by
the Central Bank of Kenya or tender security from an Insurance
Company duly recognized by the Public Procurement Oversight
Authority of Kenya (PPOA).
2.18.1 Tender closes at 1500hrs (East Africa Time) on 22nd September
2016
2.24 1) Evaluation criteria for the tender for supply of LPG Cylinders:
No. Evaluation criteria Score
1. Specific experience
The tenderer is to present five (5) letters of
reference from clients where supply of
3kg,6kg,13kg and 50kg Zinc metalized LPG
Cylinders complete with valves has been
undertaken preferably in the tropics
Reference letters must be attached where the
evaluation committee may carry out due diligence
to ascertain this.
25
2. Representation in Kenya:
Evidence of representation in Kenya -Joint
Venture with a company incorporated and
operating in Kenya. Official Joint venture
agreements must be presented (if scanned copy
is presented, it must be certified by notary
public/commissioner of oaths) or;
A written assurance that, in the case of a
tenderer not doing business within Kenya, the
tenderer is or will be (if awarded the contract)
able to provide qualified personnel within 2
weeks at tenderers own cost to carry out
technical support for the goods tendered for.
5
3. Evaluation of sample plates with Logo and
Fittings:
Sample color plate of cylinder with National
Oil brand Logo. The must meet desired color
pantone and include zinc metallization and
powder painting in paint work as minimum
30
Page 20 of 57
desirable qualities (samples that do not meet
the minimum desirable qualities will be
declared non responsive)
Sample of fittings (this included valve, rubber
seals, caps) that the tenderer proposes to use in
manufacture of cylinders or supply (samples
that do not meet the minimum desirable
qualities will be declared non responsive)
4. Drawings:
Clear drawings of complete cylinder design(s) the
tenderer proposes to supply with value proposition
on the usability of each cylinder design, with the
recommended accessories to be used.
(drawings that do not conform will be declared non
responsive)
20
5. Proof of quality test by KEBS:
Proof of quality testing by institutions acting as
agent for Kenya Bureau of Standards (KEBS).The
tenderer must submit written undertaking that
cylinders complete with cylinder components or
fittings (cylinder complete with valves, rubber
seals, caps) manufactured by the tenderer are
suitable for filling, transportation and use as
pressurized vessels for Liquefied Petroleum Gas
(LPG).
10
6. Delivery timeline:
Ability to supply within acceptable timelines
(maximum of 10 weeks at port of Mombasa) after
receipt of Order.
Tenderer should clearly demonstrate their
capability to supply within the period stated in its
tender presentation.
10
TOTAL 100
Non-conformity to the technical specification set out in the tender will
render any submission technically non-responsive.
To be considered technically responsive for supply of LPG cylinders
complete with valves the tenderer should have a minimum score of 70
points out of the 100points above.
In addition to clause 2.27, Only tenderers that score 70 points and
above will have their financial proposals considered.
2.27.4 Award criteria
2.32.1 The Procuring entity will award the contract to the successful
tenderer(s) whose tender has been determined to be substantially
responsive and has been determined to be the lowest evaluated tender,
provided further that the tenderer is determined to be qualified to
perform the contract satisfactorily.
Award of the tender will be subject to prevailing market prices and due
diligence.
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2.29.1
Performance Security
The amount of Performance Security shall be 10% of the projected
Contract Price in the format of the Performance Security Form
provided in the tender document in the form of a bank guarantee drawn
by a bank licensed and operating in Kenya or a foreign bank
recognized by the Central Bank of Kenya.
2.7 2.33 Language of Tender
The tender prepared by the tenderer, as well as all correspondence and
documents relating to the tender exchange by the tenderer and the
Procuring entity, shall be written in English language, provided that
any printed literature furnished by the tenderer may be written in
another language provided they are accompanied by an accurate
English translation of the relevant passages in which case, for purposes
of interpretation of the tender, the English translation shall govern
2.31 In addition to clause 2.31, the ethics as described below will apply:
Ethics
It is a requirement that both National Oil and prospective suppliers of
goods, services and works observe the highest standards of ethics
during the procurement and execution of contracts.
In pursuance of this policy, National Oil requires that all bidders
concerned take measures to ensure that no transfer of gifts, payments
or other benefits to officials of National Oil and/or
procurement/management staff with decision making responsibility or
influence occurs. In this regard, National Oil will require all tenderers
to sign, as part of the tender documents, an Integrity Pact (Section VIII
– Standard forms, clause 8.8). Non-delivery of the Bidders
Declaration and Integrity Pact (Section VIII – Standard forms,
clause 8.8) duly undersigned by the chief executive or legal
representative of the tendering party will result in exclusion of the
bid/ quotation from the procurement process.
National Oil reserves the right to suspend or cancel a tender/quotation
if corrupt practices of any kind are discovered at any stage of the award
process.
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3 SECTION III – GENERAL CONDITIONS OF CONTRACT
TABLE OF CONTENTS .................................................................................................. Page
3.1 DEFINITIONS ....................................................................................................................... 23
3.2 APPLICATION ...................................................................................................................... 23
3.3 COUNTRY OF ORIGIN ....................................................................................................... 23
3.4 STANDARDS ......................................................................................................................... 23
3.5 USE OF CONTRACT DOCUMENTS AND INFORMATION ........................................ 23
3.6 PATENT RIGHTS ................................................................................................................. 24
3.7 PERFORMANCE SECURITY ............................................................................................ 24
3.8 INSPECTION AND TESTS .................................................................................................. 24
3.9 PACKING ............................................................................................................................... 25
3.10 DELIVERY AND DOCUMENTS ........................................................................................ 25
3.11 INSURANCE .......................................................................................................................... 25
3.12 PAYMENT ............................................................................................................................. 25
3.13 PRICES ................................................................................................................................... 25
3.14 ASSIGNMENT ....................................................................................................................... 25
3.15 SUBCONTRACTS ................................................................................................................. 26
3.16 TERMINATION FOR DEFAULT ....................................................................................... 26
3.17 LIQUIDATED DAMAGES .................................................................................................. 26
3.18 RESOLUTION OF DISPUTES ............................................................................................ 26
3.19 LANGUAGE AND LAW ...................................................................................................... 26
3.20 FORCE MAJEURE ............................................................................................................... 26
Page 23 of 57
3.1 Definitions
3.1.1 In this Contract, the following terms shall be interpreted as indicated:
a) “The Contract” means the agreement entered into between the Procuring entity and the
tenderer, as recorded in the Contract Form signed by the parties, including all
attachments and appendices thereto and all documents incorporated by reference
therein.
b) “The Contract Price” means the price payable to the tenderer under the Contract for the
full and proper performance of its contractual obligations
c) “The Goods” means all of the equipment, machinery, and/or other materials, which the
tenderer is required to supply to the Procuring entity under the Contract.
d) “The Procuring entity” means the organization purchasing the Goods under this
Contract.
e) “The Tenderer’ means the individual or firm supplying the Goods under this Contract.
3.2 Application
3.2.1 These General Conditions shall apply in all Contracts made by the Procuring entity for the
procurement installation and commissioning of equipment.
3.3 Country of Origin
3.3.1 For purposes of this clause, “Origin” means the place where the Goods were mined, grown or
produced.
3.3.2 The origin of Goods and Services is distinct from the nationality of the tenderer.
3.4 Standards
3.4.1 The Goods supplied under this Contract shall conform to the standards mentioned in the
Technical Specifications.
3.5 Use of Contract Documents and Information
3.5.1 The tenderer shall not, without the Procuring entity’s prior written consent, disclose the
Contract, or any provision therefore, or any specification, plan, drawing, pattern, sample, or
information furnished by or on behalf of the Procuring entity in connection therewith, to any
person other than a person employed by the tenderer in the performance of the Contract.
3.5.2 The tenderer shall not, without the Procuring entity’s prior written consent, make use of any
document or information enumerated in paragraph 3.5.1 above.
3.5.3 Any document, other than the Contract itself, enumerated in paragraph 3.5.1 shall remain the
property of the Procuring entity and shall be returned (all copies) to the Procuring entity on
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completion of the Tenderer’s performance under the Contract if so required by the Procuring
entity.
3.6 Patent Rights
3.6.1 The tenderer shall indemnify the Procuring entity against all third-party claims of infringement
of patent, trademark, or industrial design rights arising from use of the Goods or any part
thereof in the Procuring entity’s country.
3.7 Performance Security
3.7.1 Within thirty (30) days of receipt of the notification of Contract award, the successful tenderer
shall furnish to the Procuring entity the performance security in the amount specified in Special
Conditions of Contract.
3.7.2 The proceeds of the performance security shall be payable to the Procuring entity as
compensation for any loss resulting from the Tenderer’s failure to complete its obligations
under the Contract.
3.7.3 The performance security shall be denominated in the currency of the Contract, or in a freely
convertible currency acceptable to the Procuring entity and shall be in the form of a bank
guarantee or an irrevocable letter of credit issued by a reputable bank located in Kenya or
abroad, acceptable to the Procuring entity, in the form provided in the tender documents.
3.7.4 The performance security will be discharged by the Procuring entity and returned to the
Candidate not later than thirty (30) days following the date of completion of the Tenderer’s
performance obligations under the Contract, including any warranty obligations, under the
Contract.
3.8 Inspection and Tests
3.8.1 The Procuring entity or its representative shall have the right to inspect and/or to test the goods
to confirm their conformity to the Contract specifications. The Procuring entity shall notify
the tenderer in writing in a timely manner, of the identity of any representatives retained for
these purposes.
3.8.2 The inspections and tests may be conducted in the premises of the tenderer or its
subcontractor(s), at point of delivery, and/or at the Goods’ final destination. If conducted on
the premises of the tenderer or its subcontractor(s), all reasonable facilities and assistance,
including access to drawings and production data, shall be furnished to the inspectors at no
charge to the Procuring entity.
3.8.3 Should any inspected or tested goods fail to conform to the Specifications, the Procuring entity
may reject the equipment, and the tenderer shall either replace the rejected equipment or make
alterations necessary to meet specification requirements free of costs to the Procuring entity.
3.8.4 The Procuring entity’s right to inspect, test and where necessary, reject the goods after the
Goods’ arrival shall in no way be limited or waived by reason of the equipment having
previously been inspected, tested and passed by the Procuring entity or its representative prior
to the equipment delivery.
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3.8.5 Nothing in paragraph 3.8 shall in any way release the tenderer from any warranty or other
obligations under this Contract.
3.9 Packing
3.9.1 The tenderer shall provide such packing of the Goods as is required to prevent their damage or
deterioration during transit to their final destination, as indicated in the Contract.
3.9.2 The packing, marking, and documentation within and outside the packages shall comply
strictly with such special requirements as shall be expressly provided for in the Contract.
3.10 Delivery and Documents
3.10.1 Delivery of the Goods shall be made by the tenderer in accordance with the terms specified by
Procuring entity in its Schedule of Requirements and the Special Conditions of Contract.
3.11 Insurance
3.11.1 The Goods supplied under the Contract shall be fully insured against loss or damage incidental
to manufacturer or acquisition, transportation, storage, and delivery in the manner specified in
the Special conditions of contract.
3.12 Payment
3.12.1 The method and conditions of payment to be made to the tenderer under this Contract shall be
specified in Special Conditions of Contract.
3.12.2 Payments shall be made promptly by the Procuring entity as specified in the contract.
3.13 Prices
3.13.1 Prices charged by the tenderer for goods delivered and services performed under the Contract
shall not, with the exception of any price adjustments authorized in Special Conditions of
Contract, vary from the prices by the tenderer in its tender.
3.13.2 Contract price variations shall not be allowed for contracts not exceeding one year (12 months)
3.13.3 Where contract price variation is allowed, it shall be negotiated between the procuring entity
and the successful tenderer, and the variation shall not exceed 10% of the original contract
price.
3.13.4 Price variation request shall be processed by the procuring entity within 30 days of receiving
the request.
3.14 Assignment
3.14.1 The tenderer shall not assign, in whole or in part, its obligations to perform under this Contract,
except with the Procuring entity’s prior written consent.
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3.15 Subcontracts
3.15.1 The tenderer shall notify the Procuring entity in writing of all subcontracts awarded under this
Contract if not already specified in the tender. Such notification, in the original tender or later,
shall not relieve the tenderer from any liability or obligation under the Contract.
3.16 Termination for default
3.16.1 The Procuring entity may, without prejudice to any other remedy for breach of Contract, by
written notice of default sent to the tenderer, terminate this Contract in whole or in part:
a) if the tenderer fails to deliver any or all of the goods within the period(s) specified in
the Contract, or within any extension thereof granted by the Procuring entity;
b) if the tenderer fails to perform any other obligation(s) under the Contract; and
c) if the tenderer, in the judgment of the Procuring entity has engaged in corrupt or
fraudulent practices in competing for or in executing the Contract.
3.16.2 In the event the Procuring entity terminates the Contract in whole or in part, it may procure,
upon such terms and in such manner as it deems appropriate, equipment similar to those
undelivered, and the tenderer shall be liable to the Procuring entity for any excess costs for
such similar goods.
3.17 Liquidated Damages
3.17.1 If the tenderer fails to deliver any or all of the goods within the period(s) specified in the
contract, the procuring entity shall, without prejudice to its other remedies under the contract,
deduct from the contract prices liquidated damages sum equivalent to 0.5% of the delivered
price of the delayed items up to a maximum deduction of 10% of the delayed goods. After this
the tenderer may consider termination of the contract.
3.18 Resolution of Disputes
3.18.1 The procuring entity and the tenderer shall make every effort to resolve amicably by direct
informal negotiation and disagreement or dispute arising between them under or in connection
with the contract.
3.18.2 If, after thirty (30) days from the commencement of such informal negotiations both parties
have been unable to resolve amicably a contract dispute, either party may require adjudication
in an agreed national or international forum, and/or international arbitration.
3.19 Language and Law
3.19.1 The language of the contract and the law governing the contract shall be English language and
the Laws of Kenya respectively unless otherwise stated.
3.20 Force Majeure
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3.20.1 The tenderer shall not be liable for forfeiture of its performance security or termination for
default if and to the extent that it’s delay in performance or other failure to perform its
obligations under the Contract is the result of an event of Force Majeure.
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4 SECTION IV – SPECIAL CONDITIONS OF CONTRACT
4.1 Special Conditions of Contract shall supplement the General Conditions of Contract.
Whenever there is a conflict, between the GCC and the SCC, the provisions of the SCC herein
shall prevail over these in the GCC.
4.2 Special conditions of contract as relates to the GCC
REFERENCE
OF GCC
SPECIAL CONDITIONS OF CONTRACT
4.2.1
The performance security shall be 10% of Contract Price in the Form of
Bank Guarantee drawn by a bank licenced and operating in Kenya or an
international bank recognized by the Central Bank of Kenya.
3.20.2 Within thirty (30) days of receipt of the notification of Contract award,
the successful tenderer shall furnish to the Procuring entity the
performance security in the amount specified in Special Conditions of
Contract.
4.2.2 100% of ordered value with issuance of deferred letter of credit (LC)
under the incoterms CIF Mombasa.
4.2.3 1. The provisions of the Arbitration Act, laws of Kenya shall apply.
2. The Arbitration language shall be English language
3. The seat of arbitration shall be Nairobi, Kenya.
4. The dispute shall be heard and determined by a single arbitrator
appointed by the parties thereto.
4.3 Allocation
The successful tenderer, should, during the Term of contract maintain sufficient manufacturing
capacity, stocks of raw materials and stocks of Products to enable it to meet the procuring
entity’s (National Oil’s) forecasted requirements for products as notified to the supplier.
Page 29 of 57
5 SECTION V – TECHNICAL SPECIFICATIONS
5.1 General
5.1.1 These specifications describe the requirements for goods. Tenderers are requested to submit
with their offers the detailed specifications, drawings, catalogues, etc for the products they
intend to supply
5.1.2 Tenderers must indicate on the specifications sheets whether the equipment offered comply
with each specified requirement.
5.1.3 All the dimensions and capacities of the equipment to be supplied shall not be less than those
required in these specifications. Deviations from the basic requirements, if any shall be
explained in detail in writing with the offer, with supporting data such as calculation sheets,
etc. The procuring entity reserves the right to reject the products, if such deviations shall be
found critical to the use and operation of the products.
5.1.4 The tenderers are requested to present information along with their offers as follows:
i) Shortest possible delivery period of each product; and
ii) Information on proper representative and/or workshop for back-up service/repair and
maintenance including their names and addresses.
5.2 Warranty
The bidder’s quotation shall be required to include a comprehensive warranty for a period of
one (1) year for the goods supplied.
5.3 PARTICULARS
5.3.1 Drawings and samples
The tenderers must provide drawings and sample plates of their work as part of their tender
document. The sample plate with brand colors and logo must meet the specifications given
below under particulars.
5.3.2 LPG CYLINDERS - 3KG,6KG,13KG& 50KG
The projected quantity required for the contract period is as follows:
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Cylinders
Size of cylinder Unit of measure Quantity
3KG Each 5,000
6 KG Each 15,000
13KG Each 50,000
50KG Each 400
5.3.3 TERMS OF REFERENCE
A. DESIGN AND CONSTRUCTION OF REFILLABLE WELDED STEEL GAS
CYLINDERS FOR LPG
5.3.3.1 Norms and Standards Used
ADR
Directive 1999/36/EC TPED – Transport Pressure Equipment Directive – Mark P
EN 1442 Transportable Refillable Welded Steel Cylinders for Liquefied
Petroleum Gas – Design and Construction
KS 06 – KS 06 – 04 Kenyan Standard for specification for hot rolled steel sheets for
manufacture of low pressure Gas cylinders
KS ISO 4706:2008 Gas Cylinders – refillable welded steel cylinders –Test
pressure not greater than 60 bar
5.3.3.2 Scope
a) The specification deals with welded low carbon steel cylinders intended for storage and
transportation of low pressure liquefiable gases of nominal capacity 5 litres up to 250
litres of water capacity and design pressure for 18N/mm2.
b) The Kenya Bureau of Standards (KEBS) lays down the requirements for the material
to be used in the manufacture of cylinders, their construction, making and testing.
c) Tenderers should have Diamond Mark from Kenya Bureau of Standards (KEBS)
5.3.3.3 Description of the cylinder design
a) The body of the cylinder will be made of two drawn ends (two part cylinders) or of two
drawn ends and a longitudinally welded cylindrical shell (three-part cylinders).
b) The neck will be welded into the hole of the upper end for fitting the valve.
c) The base will be welded onto the lower end to ensure the stability of the cylinder. The
base will be equipped with holes in its lower part in order to prevent accumulation of
moisture.
d) Both plastic and steel protective caps should conform to the requirements of EN 962.
Page 31 of 57
e) Cylinders will be equipped with a unified valve in accordance with the Kenya Bureau
of Standards Requirements.
f) Cylinder designs should have the collar welded onto the upper end for protection of the
valve and for carrying the cylinder.
5.3.3.4 Material of pressure parts
a) The material used for the manufacture of cylinders shall conform to KS ISO 4706:2008.
b) The cylinder manufacturer shall obtain and provide Certificates of Cast (Heat) Analysis
of the steels supplied for the construction of the gas cylinders and establish means to
identify the cylinders with casts from which they are made.
c) The material used for the manufacture of the valve pad or bung shall be compatible
withthat used for the cylinder body.
d) The material used for backing strip shall be compatible with that used for the cylinder
body.
5.3.3.5 Design
a) The cylinder shall be of welded construction having cold or hot drawn cylinder portion
with hemispherical, ellipsoidal or torispherical ends welded to it or two halves cold or
hot drawn and circumferentially welded together.
b) The calculation of the thickness of the pressure parts of the gas cylinder is related to the
minimum yield strength of the material under section number 4 (material of pressure
parts) above.
c) The thickness of the shell for 3kg, 6kg and 13kg cylinder shall not be less than 2.40mm
and the actual thickness of the end or dished part shall be not less than the thickness of
the cylindrical portion.
d) The thickness of the shell for 50kg cylinder shall not be less than 3.00mm and the actual
thickness of the end or dished part shall be not less than the thickness of the cylindrical
portion.
e) The 6kg collar, shall be a straight collar
5.3.3.6 Fabrication
Welding
a) The cylinder shall be welded by a suitable fusion welding method.
b) Before welding, the plates to be joined shall be free from scales, grease, oil and
dirt. Before the cylinders are closed, longitudinal welds wherever used shall be
visually examined from both sides to ensure the weld is satisfactory.
c) Welds shall have an even finish and shall merge into the parent material without
undercutting or abrupt irregularity.
d) The welding electrodes used shall be such that the desired properties of the weld
are obtained and the mechanical values of the welded metal are not lower than
the specified values of the parent material.
e) The chemical composition of the weld shall be compatible with the parent
material.
f) As far as possible, all welded joints shall be double welded butt joints.
Page 32 of 57
Manufacture
a) The number of longitudinal seams in the welded cylinder shall not exceed one
and the number of circumferential seams shall not exceed two.
b) When the welded cylinder contains a longitudinal seam, the edges of the plate
forming the longitudinal joint of the shell shall be rolled or formed by pressure,
not by blows to required curvature.
c) The end or dished part shall be of hemispherical, semi-ellipsoidal or
torispherical shape. These shall be forgings suitably thickened to take the valve,
or pressed ends, with provision for the valve made by a welded-on cap piece or
nipple. The end shall have a cylindrical skirt or parallel portion of a minimum
length of 20mm or three times the shell thickness, whichever is greater.
d) Agreed Finish Thickness shall not be less than the minimum calculated wall
thickness and definitely not less than that specified on clause 5.3.3.5
e) Examination Of The Cylinders Before Closing In Operation – Each cylinder
shall be examined for wall thickness, before the closing in operation, circularity
of the cylindrical shell and skirt portion of ends, external and internal surface
defects, the profile regularity of the ends, offsets at the joints and straightness.
i) Circularity – The out of roundness of the cylindrical shell shall be
limited to such a value that the difference between the maximum and
minimum outside diameter in the same cross section is not more than
1% of the mean diameters.
ii) Surface Defects – The internal and external surfaces of the cylinder shall
be free from defects which will adversely affect the safe working of the
cylinder.
iii) Profile Regularity – The inner surface of the end shall not deviate from
the prescribed shape by more than 1.25% of the nominal diameter of the
head skirt.
iv) Offset at the Joint – the mis-alignment measured at the surface of the
plates shall not exceed 10% of the nominal plate thickness. Where the
thickness of the ends exceeds the shell thickness by more than 25%, the
abutting edges shall be reduced by a smooth taper extending for a
distance of four times the offset between the abutting edges.
v) Straightness – unless otherwise shown on drawings, the maximum
deviation of the shell from a straight line shall not exceed 0.3% of the
cylindrical length.
vi) Water Capacity – water capacity of the cylinder shall have a tolerance
of +3% / - 0%.
Valves
a) The valve connection may be forged integral with the end or in case of a valve
connection not forged integral with the end, it shall consist of a welded or brazed
pad, boss or nipple and shall be threaded to suite the type of valve.
b) The valve shall be protected in one of the following ways:
i) By a stout metal cap perforated for ventilation and of thickness not less
than 2.50mm screwed to the neck.
ii) By a stout metal collar welded to the upper end of the cylinder concentric
with the neck. The height and diameter of the collar shall ensure
adequate protection to the valves. The thickness of the collar shall not
be less than 2.0mm.
Page 33 of 57
Foot ring
a) The foot ring where fitted as a separate fixture to the bottom end of the cylinder
shall be at least 20mm away from the circumferential welds. The thickness of
the sheet from which the foot ring is made shall be curled inwards to facilitate
safe handling. It shall be provided with holes to avoid corrosion.
b) The maximum permissible deviation from the vertical shall not exceed 1
Degree. The foot ring shall be sufficiently strong and made of material
compatible with that of the cylinder. The bottom of the foot ring shall not be
less than 8mm below the outside bottom of the cylinder shell for cylinders up
to 34 litres water capacity and not less than 25mm for cylinders of more than 34
litres water capacity.
5.3.3.7 Heat Treatment
a) All cylinders shall be efficiently normalized or stress relieved after manufacture and
completion of all welding and before hydrostatic test is applied. A complete record of
the heat treatment cycle shall be maintained.
5.3.3.8 Radiographic examination
a) Radiographic examination shall comply with the techniques and acceptability criteria
set forth in ISO 2504. The radiographic technique used shall be sufficiently sensitive to
reveal a defect having a thickness equal to 2% of the combined thickness of the weld
and the backing strip.
b) One out of each 100 consecutive cylinders from continuous production shall be taken
at random for spot radiography.
c) In addition, after a change in the type or size of cylinder or the welded procedure
(including machine settings) or after break in the production exceeding four hours, the
first cylinder welded shall be taken for spot radiography.
d) On each cylinder so taken, each weld intersection and 100mm of the adjacent
longitudinal weld and 50mm (25mm each side of the intersection) of the adjacent
circumferential weld shall be radiographed.
e) Interpretations of Radiographs – for correct interpretation of radiographs, the film
density shall preferably be between 2and 3 but in no case less than 1.7.
f) Anyone of the following imperfections shall be unacceptable:
i) any type of crack or zone or incomplete fusion or penetration;
ii) any elongated slag inclusion which has a length greater than half the thickness
with a maximum of 6mm for thickness exceeding 18mm; and
iii) any group of inclusions of slag in alignment the total length of which exceeds
the thickness over a length of 12 times the thickness except when the distance
between successive defects exceeds 6 times the length of the longest defect in
the group.
5.3.3.9 Mechanical tests
a) The manufacturer shall provide testing facilities for the mechanical tests.
Page 34 of 57
b) Hydraulic Test – each heat treated cylinder shall be subjected to hydraulic pressure test
equivalent to twice the design pressure but not less than 30 bars. The pressure shall be
applied slowly and held for a sufficient length of time for examination only. Any
cylinder showing leakage shall be treated as a case of failure and shall be repaired and
tested.
c) Pneumatic Test – subsequent to the hydraulic test, every cylinder shall be subjected to
a pneumatic test at a pressure of one and half times the working pressure but not less
than 15 bars. At these pressures, there shall be no leakage. When under pneumatic
pressure, the cylinder shall either be completely immersed in water or all seams shall
be painted with a solution of soap and water. If cylinders are ordered with valves fitted,
pneumatic testing must be done after the valves have been fitted to check that the
connection between the valve and cylinder does not leak.
d) Bursting Test –one cylinder taken at random from each batch of 500 or less shall be
subjected to an internal hydrostatic pressure till it bursts. The cylinder shall burst
without fragmentation.
e) Acceptance tests:
the following tests shall be made on test pieces taken at random out of each
batch of 500 or less from heated treated cylinders:
o Tensile tests – one in a longitudinal direction on plate material.
o Weld tests – including one reduced section tensile test, one face and one
root bend test in all direction transverse to the weld and macro and micro
examination. The face and root of the weld in test specimens shall be
machine flush to plate surface.
o Minimum thickness test – once.
If a sample fails in any of the mechanical tests:
o The mechanical test in which the failure occurred shall be repeated on
the cylinder in addition all the mechanical tests shall be carried out on
another cylinder from the batch.
o The batch may be reheat treated and mechanical tests performed on two
cylinders which have previously not been tested. If both cylinders
comply, the batch may be accepted.
If any of the mechanical tests fails, the batch shall be rendered unserviceable for
holding LPG under pressure.
f) Cylinders showing leaks in the hydraulic or pneumatic leakage tests at any other place
other than the weld shall be rejected and rendered unserviceable.
g) Defects in radiography – if a cylinder fails due to non-compliance, then the following
procedure shall be adopted:
All cylinders belonging to the control unit in which the cylinder failed shall be
rejected. From the rest of the batch, one cylinder from each control unit shall be
selected at random and cylinders shall be passed or failed control unit wise
depending upon the result of the burst tests.
If failure can be attributed to a cause which is discernible even before the test,
all cylinders with such defects shall be segregated and reprocessed after repair.
From the balance of the cylinders, two more cylinders shall be selected at
random and tested. If one or both fail, then the procedure laid down for testing
control-unit wise shall be adopted.
5.3.3.10 Control and tests
Page 35 of 57
During the manufacture, the following controls and tests should be carried out in order to ensure
the quality of manufacture:
a) Mechanical tests of the parent material of pressure parts – EN 10002-1
b) Inter-stage control of dimensions of individual parts
c) Mechanical tests of welded joints – EN 876, EN 895, EN 910, EN 1321
d) Radiographic examination of welded joints – EN 1435
e) 100% visual control of all welds – EN 970
f) 100% hydraulic pressure test 30 bars – EN 1442
g) Burst test under hydraulic pressure – EN 1442
h) Regular control of the surface finish thickness
i) 100% visual control of the surface finish
j) 100% tightness test with compressed air of 15 bar after fitting the valve
The frequency and the manner of execution of the above mentioned tests are stated in the
relevant standards used for the design and construction and in the corresponding standards.
The inspection of the cylinders will be carried out by an independent inspection body.
The quality of manufacture is guaranteed by the implementation of the quality control system
ISO 9000 and EN 14001.
5.3.3.11 Zinc Metalizing and Powder Painting
All cylinders shall have one coat Zinc Metalized 40 microns minimum and at least one coat
one baked stoving powder paint 50 microns minimum.
5.3.3.12 Cylinder Color & Supa GAS Logo Color Specifications
The Cylinder Color Specifications for the cylinder shall be PANTONE COOL GRAY 7C (C-
38%, M-37%, Y-40%, and K-18%).
The Supa GAS logo Specifications shall be as detailed on Appendix 1
5.3.3.13 Cylinder Embossing and Safety Instructions on Cylinders
The successful tenderer shall emboss all cylinders with brand name Supa GAS on the upper
shell of each cylinder.
Safety instructions shall be screen printed on each cylinder
5.3.3.14 Records
A record shall be kept of all tests made at the cylinder manufacturer’s works and copies shall
be forwarded to National Oil and to the inspecting authority.
5.3.3.15 Preparation for dispatch
Before being fitted with valves, all cylinders shall be thoroughly cleaned and dried internally
to the satisfaction of the inspecting authority. The outside shall be given a suitable protective
coating before dispatch. Threads of the cylinder bung shall be greased to protect from rust.
5.3.3.16 Packaging
Page 36 of 57
Each cylinder will be protected by a plastic net at the circumferential welds in order to prevent
the damage of the surface finish during the transportation.
5.3.4 TERMS OF REFERENCE
B. KENYA STANDARD KS 201:2007
VALVE FOR LIQUIFIED PETROLEUM GAS CYLINDERS FOR DOMESTIC USE
5.3.4.1 Specification
This specification covers the requirements of unified valves for LPG cylinders of nominal
capacity 7.0 litres up to 47.6 litres water capacity, a design (rated service) pressure rating of
1.8 MPa and LPG Cylinders of 3kg, 6kg, 13kg& 50kgs.
5.3.4.2 Terms and definitions
For the purposes of the spoliations, the following terms and definition apply.
LPG
This shall be as defined in KS 03 – 91: Specification for Liquefied Petroleum Gas.
Cylinder valve
Valve designed for use in one or more of the following applications: liquid filling, liquid
service, vapour service, liquid level indication.
External tightness
Resistance to leakage through the valve body to or from the atmosphere.
Internal tightness
Resistance to leakage across the valve seat, or other internal sealing components, when
the valve is closed.
Valve body
Major valve component including valve stem and/or valve outlet and, where applicable,
the provision for other optional components.
Non – return valve
Valve designed to close automatically to restrict reverse flow.
Sealing element
Element used to provide internal leak tightness.
Page 37 of 57
Valve stem
Section of the valve body which connects to the cylinder.
Valve outlet
Section of the valve to which a regulator or connector can be fitted.
Type test
Test or series of tests conducted to prove that the design meets the requirements of this
standard.
Cylinder opening
Part of the cylinder to which the valve stem connects.
Quick coupling connector/regulator
System which enables an appliance or equipment to be connected to a cylinder valve
without the use of tools.
Test pressure
Pressure at which the valve or component is tested in bar gauge.
Sediment tube
Device designed to reduce the risk of foreign matter, which may be in the cylinder,
entering the valve.
Protection cap/Dust cap
Device fitted to the valve outlet and intended for one or more of the following functions:
a) to protect the outlet; and
b) to prevent the ingress of foreign matter to indicate unauthorized
manipulation.
Sealing cap
Device fitted to, or integral with, the outlet of the cylinder valve to provide secondary
closure.
Appendix 1 (attach Supa GAS Logo)
Page 38 of 57
Valve operating mechanism
Mechanism that opens the valve when, or after, a regulator or connector is fitted and
closes automatically when, or before, a regulator or connector is disconnected.
Sealing mechanism
Mechanism to obtain internal leak tightness.
5.3.4.3 Materials
i) The body of the valve shall be made of brass whose chemical composition shall be as
follows:
Composition Element % Composition
Copper 57 – 61%
Lead 0.2 – 2.5%
Tin 0.2% max
Nickel 0.3% max
Aluminium 0.05% max
Iron 0.2% max
Zinc remainder
Others 0.2% max
ii) The valve seat shall be made of brass or neoprene.
iii) The valve seals shall be made of neoprene or nitrile.
iv) The spindle shall be made of brass (should be of same composition as the body of the
valve).
v) The spindle guide shall be of acetal resin.
vi) The spring shall be of stainless steel spring wire.
vii) The locking nut shall be made of brass (should be of same composition as the body of
the valve).
viii) The gasket shall be made of neoprene or nitrile.
5.3.4.4 Performance requirements
i) The valve shall be of the self-closing type, closed by gas pressure in the cylinder
assisted by a small stainless steel spring.
ii) The valve shall be completely gas-tight and shall have no regulating function that can
restrict high filling rates.
iii) The 13kg and 50kg cylinder valves shall be with a safety relief valve. The 3kg and 6kg
cylinder shall be fitted with camping valves
iv) If it is with a safety relief valve, then the safety relief valve shall be of pop-action type
and shall have a set pressure of 2.55 MPa.
v) The safety relief valve shall open to allow blow-off should the cylinder pressure under
extreme conditions reach 2.94MPa.
vi) The capacity of the safety relief valve when fully open shall be 5.0 cubic metres of air
per minute.
vii) The spindle shall be able to move freely.
Page 39 of 57
5.3.4.5 Dimensions
The dimensions of the top portion of the unified valve shall be on the proportion required in
Kenya by the Kenya Bureau of Standards (KEBS). The thread details
5.3.4.6 Tests
1 External leakage test
i) Every valve shall be free from leakage through the stem or body seals or other
joints, and shall not show any evidence of porosity when tested for 45 seconds
at any pneumatic pressure between 1.0 and 1.5 times the rated service pressure
of the valve.
ii) During this test, the valve is to be connected to a source of pneumatic pressure.
A positive shut-off valve and a pressure gauge, having a pressure range of not
less than 1.5 times nor more than 2 times the test pressure, are to be installed in
the pressure supply piping.
The pressure gauge is to be installed between the shut-off valve and valve under
test. While under applied test pressure, the valve shall be submerged in water or
any other suitable leak detection procedure may be used.
2 Seat leakage test
i) The seat leakage test is to be conducted with the inlet of the valve connected to
a source of pneumatic pressure, the valve in the closed position, and with the
outlet open. A positive shut-off valve and a pressure gauge having a pressure
range of not less than 1.5 times nor more than 2 times the test pressure are to be
installed between the shut-off valve and the valve under test. While under the
applied test pressure, observations for leakage are to be made with the open
outlet submerged in water or any other seat leakage testing procedure may be
used.
ii) The seat of the valve, when in the closed position, shall be free from leakage at
any pneumatic pressure between 1.0 and 1.5 times the rated service pressure of
the valve.
iii) All valves shall pass the External Leakage Test and Seat Leakage Test.
3 Endurance Test
i) A valve shall be capable of complying with the applicable leakage test
requirements of tests 1and 2 after being subjected to 6,000 cycles of opening
and closing.
ii) A valve for use with the LPG is to be tested with the valve outlet plugged, the
valve body filled with nhexane, and the valve inlet subjected to a pressure of
1.725 MPa.
iii) An endurance test is to be conducted at a rate not faster than 10 times per minute.
4 Hydrostatic Strength Test
Page 40 of 57
i) The sample is to be connected to a source of hydrostatic pressure. A positive
shut-off valve and a pressure gauge, having a pressure range not less than 1.5
times nor more than 2 times the test pressure.
The pressure gauge is to be installed in piping between the shut-off valve and
valve under test.
ii) The valve shall be capable of withstanding without rapture or permanent
distortion, a hydrostatic pressure 5.0 times the rated service pressure of valve,
for 45 seconds.
5.3.4.7 Criteria of acceptance
Endurance of Hydrostatic Tests
For the purpose of clause 5.3.3.6, tests 3 and 4above, which should be conducted separately, a
lot shall be 5,000 valves. A sample of 50 valves shall be selected at random from the lot. All
samples shall comply.
5.3.4.8 Marking
The following shall be stamped on the valve:
i) Name and/or trademark of the manufacturer.
ii) Date of testing/batch number.
iii) Rated service pressure.
iv) Pressure relief valve set pressure.
v) Punching at the body of the cylinder shall not be allowed unless embossed.
Page 41 of 57
5.3.5 TERMS OF REFERENCE
C. LPG CYLINDER SAMPLES
CYLINDER VERIFICATION
Tenderers will submit the following as part of their Tender submission:
1 Three sample color plate for cylinder
2 One Sample Color plate with brand logo
3 Full contact details.
4 A stamped copy of the cylinder design drawing.
5 The copy of the cylinder design drawing is a one off submission providing that there is
no change to the manufacturer or cylinder standard or cylinder design.
6 The copy of the cylinder design drawing will be retained by National Oil. This drawing
will not be made available to third parties other than the Kenya Bureau of Standards
upon their request.
7 A stamped copy of the cylinder design calculations
8 The copy of the cylinder design calculations is a one off submission provided that there
is no change to the manufacturer or cylinder standard or cylinder design.
9 The copy of the cylinder design calculations will be retained by National Oil. This
document will not be made available to third parties other than the Kenya Bureau of
Standards upon their request.
10 A stamped copy of the cylinder type test certificate by a certified accreditation body.
11 Original or certified copies of the manufacturing batch certificates for the sample
cylinders.
12 Sample cylinders are required to carry the correct markings before being submitted.
13 References to "certified copies" shall mean that the copies are verified as being true
copies of the original by a commissioner of oaths. This shall be done at source.
14 The copy of the cylinder type test certificate will be submitted per batch manufactured
and supplied.
15 Copies of cylinder test certificates will be retained by National Oil for record purposes.
This document will not be made available to third parties other than the Kenya Bureau
of Standards (KEBS) upon their request.
16 A copy of the accreditation body’s certificate.
17 Manufacturing batch certificates are to be submitted to National Oil for each
manufacturing batch produced. The batch certificates will be issued strictly in
accordance with the relevant manufacturing standard. For imported cylinders this may
involve several manufacturing batches per shipment.
18 A certificate issued by an accredited test house to prove the valve design and threads
comply with the requirements of Kenya Bureau of Standards (See clause 5.3.3).
Page 42 of 57
5.3.6 TERMS OF REFERENCE
D. LPG CYLINDER SPECIFICATIONS
CYLINDER INFORMATION
5.3.6.1 Marking
a) Marking will be made by stamping, embossing or by spraying onto a form.
b) Marking will be placed on the following parts or their combinations:
Collar/Handle
Neck
Base
Body
c) Basic Marking:
Year of Manufacture
Country of Origin and Manufacturer’s Mark
Serial Number assigned by Manufacturer
Test Pressure in Bars (or MPa) and Hydraulic Test in N/mm2
Weight of Empty Cylinder Without Valve and Without Surface Finish
Tare Weight (Weight of Cylinder with Valve and Surface Finish)
Maximum Filling Weight in Kgs
Gross Weight in Kgs
Minimum Water Capacity of Cylinder in Litres
Manufacturing Standard
Identification Mark of Inspection Body
Date of First Test
Thickness of Plate in mm
Page 43 of 57
6 SECTION VI – SCHEDULE OF REQUIREMENTS
Number Description Quantity Delivery schedule
(shipment) In
Weeks/months from
receipt of order
The tenderer shall give the proposed delivery schedule which shall be used as part of the
evaluation criteria given in Section II – Instructions to tenderers.
Below is the projected minimum quantities per order:
Cylinders
Size of cylinder Unit of measure Quantity
3KG Each 5,000
6KG Each 150,000
13KG Each 50,000
50KG Each 400
7 SECTION VII – PRICE SCHEDULE FOR GOODS
Name of tenderer Tender Number Page of
1 2 3 4 5 6 7
8
Item Description Country
of
origin
Quantity Unit price Total
Price
EXW per
item
(cols.
4x5)
Unit price
of other
incidental
services
payable
Total unit
Price per
item CIF
Mombasa
1. 3kg LPG
cylinder
complete
with valve
and Zinc
metalized
1
2. 6kg LPG
cylinder
complete
with valve
and Zinc
metalized
1
3. 13kg LPG
cylinder
complete
with valve
and Zinc
metalized
1
4. 50kg LPG
cylinder
complete
with valve
and Zinc
metalized
1
Signature of tenderer
Note: In case of discrepancy between unit price and total, the unit price shall prevail.
Tenderers can quote for each design of 3kg, 6kg, 13kg& 50kg LPG cylinder under this tender
as given in Clause 5.3.2, as per the schedule above. Only unit prices are to be given by the
tenderer and they are what should be captured in the financial proposal
Prices quoted should be net inclusive of CIF Mombasa, and shall remain valid for 120 days
from the closing date of the tender.
8 SECTION VIII – STANDARD FORMS
Notes on the sample Forms
1 Form of Tender – The form of tender must be completed by the tenderer and submitted
with the tender documents. It must also be duly signed by duly authorized
representatives of the tenderer.
2 Confidential Business Questionnaire Form – This form must be completed by the
tenderer and submitted with the tender documents.
3 Tender Security Form – When required by the tender documents the tender shall
provide the tender security either in the form included herein or in another format
acceptable to the procuring entity.
4 Contract Form – The Contract Form shall not be completed by the tenderer at the time
of submitting the tender. The Contract Form shall be completed after contract award
and should incorporate the accepted contract price.
5 Performance Security Form - the performance security form should not be completed
by the tenderers at the time of tender preparation. Only the successful tenderer will be
required to provide performance security in the form provided herein or in another form
acceptable to the procuring entity.
6 Bank Guarantee for Advance Payment Form – When Advance payment is requested
for by the successful bidder and agreed by the procuring entity, this form must be
completed fully and duly signed by the authorized officials of the bank.
7 Manufacturers Authorization Form – When required by the tender documents this
form must be completed and submitted with the tender documents. This form will be
completed by the manufacturer of the goods where the tenderer is an agent.
Page 46 of 57
8.1 FORM OF TENDER
Date
Tender No.
To:
[Name and address of procuring entity]
Gentlemen and/or Ladies:
1 Having examined the tender documents including Addenda Nos.
……………………………. [Insert numbers].the receipt of which is hereby duly
acknowledged, we, the undersigned, offer to supply deliver, install and commission
(…………………………………………… (Insert equipment description) in
conformity with the said tender documents for the sum of
…………………………………………………………. (total tender amount in words
and figures) or such other sums as may be ascertained in accordance with the Schedule
of Prices attached herewith and made part of this Tender.
2 We undertake, if our Tender is accepted, to deliver install and commission the
equipment in accordance with the delivery schedule specified in the Schedule of
Requirements.
3 If our Tender is accepted, we will obtain the guarantee of a bank in a sum of equivalent
to ……………. percent of the Contract Price for the due performance of the Contract,
in the form prescribed by ………………. ………………. (Procuring entity).
4 We agree to abide by this Tender for a period of …….. [Number] days from the date
fixed for tender opening of the Instructions to tenderers, and it shall remain binding
upon us and may be accepted at any time before the expiration of that period.
5 This Tender, together with your written acceptance thereof and your notification of
award, shall constitute a Contract, between us. Subject to signing of the Contract by the
parties.
6 We understand that you are not bound to accept the lowest or any tender you may
receive.
Dated this day of 20
[Signature] [In the capacity of]
Duly authorized to sign tender for an on behalf of
Page 47 of 57
8.2 CONFIDENTIAL BUSINESS QUESTIONNAIRE FORM
You are requested to give the particulars indicated in Part 1 and either Part 2(a), 2(b) or 2 (c)
whichever applied to your type of business.
You are advised that it is a serious offence to give false information on this form
Part 1 – General:
Business Name
………………………………………………………………………………………………
…
Location of business premises.
…………………………………………………………………………………
Plot No………………………………………………… Street/Road
…………………………………………..
Postal Address ……………………….. Tel No. …………………. Fax ………………. E
mail …………….
Nature of Business
……………………………………………………………………………………………..
Registration Certificate No.
…………………………………………………………………………………
Maximum value of business which you can handle at any one time – Kshs.
Name of your bankers ……………………………………….. Branch
………………………………………
Part 2 (a) – Sole Proprietor
Your name in full …………………………………………………….. Age
………………………..
Nationality ………………………………… Country of origin
…………………………………….
Citizenship details
……………………………………………………………………
……………….
Part 2 (b) Partnership
Given details of partners as follows:
Name Nationality Citizenship Details
Shares
1. ……………………………………………………………………………
…………
2. ……………………………………………………………………………
…………
3. ……………………………………………………………………………
…………..
4. ……………………………………………………………………………
…………..
Page 48 of 57
Part 2 (c ) – Registered Company
Private or Public
……………………………………………………………………………………….
State the nominal and issued capital of company-
Nominal Kshs. ………………………………
Issued KShs. …………………………………
Given details of all directors as follows
Name Nationality Citizenship Details
Shares
1……………………………………………………………………………………………
……………
2.
……………………………………………………………………………………………
…………..
3.
……………………………………………………………………………………………
…………
4.
……………………………………………………………………………………………
…………
5
……………………………………………………………………………………………
………….
Date ………………………………………………….. Signature of Candidate
………………………………..
If a Kenyan Citizen, indicate under “Citizenship Details” whether by Birth, Naturalization or
registration.
Page 49 of 57
8.3 TENDER SECURITY FORM
Whereas ………………………………………. [name of the tenderer](hereinafter called “the
tenderer”) has submitted its tender dated …………. [date of submission of tender] for the
supply, of ……………………[name and/or description of the equipment](hereinafter called
“the Tender”) ……………………………………….. KNOW ALL PEOPLE by these presents
that WE……………………… of ………………………. having our registered office at
………………… (hereinafter called “the Bank”), are bound unto …………….. [name of
Procuring entity} (hereinafter called “the Procuring entity”) in the sum of
…………………….. for which payment well and truly to be made to the said Procuring
entity, the Bank binds itself, its successors, and assigns by these presents. Sealed with the
Common Seal of the said Bank this day of 20
.
THE CONDITIONS of this obligation are:-
1 If the tenderer withdraws its Tender during the period of tender validity specified
by the tenderer on the Tender Form; or
2 If the tenderer, having been notified of the acceptance of its Tender by the Procuring
entity during the period of tender validity:
a) fails or refuses to execute the Contract Form, if required; or
b) fails or refuses to furnish the performance security in accordance with the
Instructions to tenderers;
We undertake to pay to the Procuring entity up to the above amount upon receipt of its first
written demand, without the Procuring entity having to substantiate its demand, provided that
in its demand the Procuring entity will note that the amount claimed by it is due to it, owing to
the occurrence of one or both of the two conditions, specifying the occurred condition or
conditions.
This tender guarantee will remain in force up to and including thirty (30) days after the period
of tender validity, and any demand in respect thereof should reach the Bank not later than the
above date.
[signature of the bank]____________________________
(Amend accordingly if provided by Insurance Company)
Page 50 of 57
8.4 CONTRACT FORM
THIS AGREEMENT made the day of 20 between
……………… [name of Procurement entity) of ……….. [country of Procurement entity]
(hereinafter called “the Procuring entity) of the one part and …………………….. [name of
tenderer] of ………….. [city and country of tenderer] (hereinafter called “the tenderer”) of the
other part;
WHEREAS the Procuring entity invited tenders for certain goods ] and has accepted a tender
by the tenderer for the supply of those goods in the sum of ……………………………
[contract price in words and figures] (hereinafter called “the Contract Price).
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1 In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to:
2 The following documents shall be deemed to form and be read and construed as part of
this Agreement viz:
a) the Tender Form and the Price Schedule submitted by the tenderer
b) the Schedule of Requirements
c) the Technical Specifications
d) the General Conditions of Contract
e) the Special Conditions of contract; and
f) the Procuring entity’s Notification of Award
3 In consideration of the payments to be made by the Procuring entity to the tenderer as
hereinafter mentioned, the tender hereby covenants with the Procuring entity to provide
the goods and to remedy defects therein in conformity in all respects with the provisions
of the Contract.
4 The Procuring entity hereby covenants to pay the tenderer in consideration of the
provisions of the goods and the remedying of defects therein, the Contract Price or such
other sum as may become payable under the provisions of the Contract at the times and
in the manner prescribed by the contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with their respective laws the day and year first above written.
Signed, sealed, delivered by the (for the Procuring entity
Signed, sealed, delivered by the (for the tenderer in the presence
of
(Amend accordingly if provided by Insurance Company)
Page 51 of 57
8.5 PERFORMANCE SECURITY FORM
To ………………………………………….
[name of Procuring entity]
WHEREAS …………………………………… [name of tenderer] (hereinafter called “the
tenderer”) has undertaken, in pursuance of Contract No. [reference
number of the contract] dated 20 to supply
……………………………………………… [description of goods] (hereinafter called “the
Contract”).
AND WHEREAS it has been stipulated by you in the said Contract that the tenderer shall
furnish you with a bank guarantee by a reputable bank for the sum specified therein as security
for compliance with the Tenderer’s performance obligations in accordance with the Contract.
AND WHEREAS we have agreed to give the tenderer a guarantee:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of
the tenderer, up to a total of ………………………. [amount of the guarantee in words and
figure] and we undertake to pay you, upon your first written demand declaring the tenderer to
be in default under the Contract and without cavil or argument, any sum or sums within the
limits of …………………….. [amount of guarantee] as aforesaid, without you needing to
prove or to show grounds or reasons for your demand or the sum specified therein.
This guarantee is valid until the day of 20
Signed and seal of the Guarantors
[name of bank or financial institution]
[address]
[date]
Page 52 of 57
8.6 BANK GUARANTEE FOR ADVANCE PAYMENT FORM
To ………………………………
[name of Procuring entity]
[name of tender] …………………..
Gentlemen and/or Ladies:
In accordance with the payment provision included in the Special Conditions of Contract,
which amends the General Conditions of Contract to provide for advance payment,
…………………………………………………. [name and address of tenderer](hereinafter
called “the tenderer”) shall deposit with the Procuring entity a bank guarantee to guarantee its
proper and faithful performance under the said Clause of the Contract in an amount of ……
…………………. [amount of guarantee in figures and words].
We, the ……………………………. [bank or financial institutions], as instructed by the
tenderer, agree unconditionally and irrevocably to guarantee as primary obligator and not as
surety merely, the payment to the Procuring entity on its first demand without whatsoever right
of objection on our part and without its first claim to the tenderer, in the amount not exceeding
…………………… [amount of guarantee in figures and words]
We further agree that no change or addition to or other modification of the terms of the Contract
to be performed there-under or of any of the Contract documents which may be made between
the Procuring entity and the tenderer, shall in any way release us from any liability under this
guarantee, and we hereby waive notice of any such change, addition, or modification.
This guarantee shall remain valid in full effect from the date of the advance payment received
by the tenderer under the Contract until ………… [date].
Yours truly,
Signature and seal of the Guarantors
[name of bank or financial institution]
[address]
[date]
Page 53 of 57
8.7 MANUFACTURER’S AUTHORIZATION FORM
To [name of the Procuring entity] ………………….
WHEREAS …………………………………………………………[ name of the
manufacturer] who are established and reputable manufacturers of ………………….. [name
and/or description of the goods] having factories at ………………………………… [address
of factory] do hereby authorize ………………………… [name and address of Agent] to
submit a tender, and subsequently negotiate and sign the Contract with you against tender No.
………………………. [reference of the Tender] for the above goods manufactured by us.
We hereby extend our full guarantee and warranty as per the General Conditions of Contract
for the goods offered for supply by the above firm against this Invitation for Tenders.
[signature for and on behalf of manufacturer]
Note: This letter of authority should be on the letterhead of the Manufacturer and should be
signed by a person competent.
Page 54 of 57
8.8 BIDDER’S DECLARATION AND INTEGRITY PACT
8.8.1 Bidder’s Declaration
We/I the undersigned ............................................., in the capacity of …………………….
……………………… for ……………………………………………… [name of the
company/firm/individual] certify that the bidder is not in any of the following situations:
1 Bankruptcy; are the subject of proceedings for a declaration of bankruptcy, or of an order
for compulsory winding up or administration by court, or of any other similar proceedings;
2 Payments to us have been suspended in accordance with the judgment of a court other than
a judgment declaring bankruptcy and resulting, in accordance with our national laws, in the
total or partial loss of the right to administer and dispose off our property;
3 Legal proceedings have been instituted against us involving an order suspending payments
and which may result, in accordance with our national laws, in a declaration of bankruptcy
or in any other situation entailing the total or partial loss of the right to administer and
dispose of our property;
4 Are being wound up, or our affairs are being administered by court, or have entered into an
arrangement with creditors, or have suspended business activities or are subject to an
injunction against running business by a court of law;
5 Have been convicted by a final judgment of any crime or offence concerning our/my
professional conduct;
6 Are guilty of serious misrepresentation with regard to information required for participation
in an invitation to tender or execution of a tender already awarded; and
7 Are in breach of contract on another contract with the Government of Kenya or other local
or international contracting authority or foreign government.
8 Have been convicted of an offence concerning our/my professional conduct by a court of
law, or found guilty of grave professional misconduct;
9 Have not fulfilled obligations relating to payments of taxes or statutory contributions.
If the bidder is in any of the above listed situations, kindly attach documents giving details of
the situation.
Names in full: […………………………………………………………………]
Duly authorized to sign this bid on behalf of (bidder’s name):
[………………………………………………………………………………………]
Place and date: […………………………………………………………….………….]
Stamp of the firm/company:
Page 55 of 57
8.8.2 Integrity Pact
Bidder’s Oath to fulfill the Integrity Pact
Accepting that transparent business management and fair public administration are key to
social development and national competitiveness, and in an effort to purge corruption and apply
sanctions to corrupt businesses, and in full support of the worthy goals of this Integrity Pact,
concerning the present tender for Supply of Zinc Metalized LPG Cylinders Complete With
Valves – NOCK/PRC/03(1165) all personnel of
_______________________________________ and its sub-contractors and agents hereby
agree that:
1. We shall not conduct any unethical business practices, such as bid-rigging for the sake of a
particular bidder to win the bid, or price-fixing. If proven as a fact that we have engaged in
bid-rigging for the sake of a particular bidder to win the bid, we shall accept to be prohibited
from submitting bids placed by National Oil Corporation of Kenya (herein referred to as
NATIONAL OIL) for a period of two (2) years. If proven that we have discussed with other
bidders in a bid to fix a price, or rigged a bid for a particular bidder to win the bid, we shall
accept the prohibition from submitting bids placed by NATIONAL OIL for a period of two
(2) years. If any unethical behaviour is tantamount to a fraudulent practice, we accept that
such a case may be handed over to the authorities for investigation and possible prosecution.
2. In the process of bidding, or concluding or execution of a contract, we shall not offer any
bribe, gifts, entertainment or any other undue benefits directly or indirectly to related
officials, and in case it is proved that we have violated any terms of this Integrity Pact in
relation with a bid, or concluding or execution of a contract, or offered bribes for favours
in a contract, to win a contract, or facilitate payment which should not have been
forthcoming, we shall accept the prohibition from submitting a bid placed by NATIONAL
OIL for a period of two (2) years. If proven as a fact that we have offered bribes to
NATIONAL OIL or related officials for favours regarding a bid or contract to a bidder or
a winning bidder, or for the purpose of faulty execution of the objectives of a contract, we
shall accept the prohibition from submitting bids placed by NATIONAL OIL for a period
of two (2) years. If proven that we have offered bribes to NATIONAL OIL or related
officials in relation to bidding, or concluding or execution of a contract, we shall accept the
prohibition from submitting bids placed by NATIONAL OIL for a period of two (2) years.
3. In case it is proven that we have offered bribes to a related official or a NATIONAL OIL
official regarding a bid, or concluding or execution of a contract, we shall accept the
cancellation of the contract, and shall not file any civil, administrative or criminal appeals.
4. We shall make our best effort to institute a Company Code of Conduct that prohibits
bribery, bid rigging/fixing or any other corrupt practices in business relations with officials
and NATIONAL OIL, and a company regulation that prohibits any retaliatory acts toward
anyone reporting inside corruption.
5. In addition, I confirm on behalf of the bidder that the details included in the bidders profile
and experience sheet and our quotation are correct to the best of my knowledge and belief.
In addition, we authorize, NATIONAL OIL to seek information from any source to confirm
our compliance with the requirements of this Integrity Pact.
Page 56 of 57
6 The bidder authorizes NATIONAL OIL, to seek information from any source, including
publication of the name of the bidder to confirm that the bidder is compliant with the
requirements of this Integrity Pact.
We shall fulfill this Integrity Pact as a solemn oath made on the basis of mutual trust, and, if
and when we win a bid, we shall sign and fulfill the above as a “Special Condition of Contract,”
and not file any civil, administrative or criminal appeals regarding any of the above terms.
Dated: _____________________________________________________
Signed by: _____________________________________________________
(Chief Executive/Managing Director)
Full Name printed: _____________________________________________________
Page 57 of 57
8.9 LETTER OF NOTIFICATION OF AWARD
Address of Procuring Entity
_____________________
_____________________
To:
RE: Tender No.
Tender Name
This is to notify that the contract/s stated below under the above mentioned tender have been
awarded to you.
1. Please acknowledge receipt of this letter of notification signifying your acceptance.
2. The contract/contracts shall be signed by the parties within 30 days of the date of this
letter but not earlier than 14 days from the date of the letter.
3. You may contact the officer(s) whose particulars appear below on the subject matter of
this letter of notification of award.
(FULL PARTICULARS)
SIGNED FOR ACCOUNTING OFFICER
